Destiny Church leader Brian Tamaki is facing a potential defamation lawsuit by Taranaki drag queen duo Erika and CoCo Flash.
The pair say false information has been spread about their Rainbow Storytime events.
Tamaki has been trying to shut them down, posting on social media that the shows are "sexualising our children" and that libraries are not an appropriate venue.
The drag queens - Daniel Lockett and Sunita Torrance - are now planning legal action.
"The main point is to stop what is happening, you know? This is a job for us, this is business for us," Lockett, known as Erika Flash, told Newshub.
The duo held their Rainbow Storytime event on Tuesday at Gisborne's library, despite Destiny Church supporters painting over the city's rainbow crossing the night before in opposition to the event.
As the queens performed the next day, a protest unfolded outside, with some holding signs saying, "leave our kids alone", even though the event was restricted to people aged 16 and older.
"We're just figuring out how we're going to go about it. But we just know that we are going to take some sort of action," Torrance, known as CoCo Flash, told Newshub.
The pair have already fundraised more than $4000 towards legal fees.
"He's very experienced and one of the top lawyers for defamation around," Torrance said of their lawyer, who they chose not to name. "He's going to give us the best course of action."
Robert Stewart, another defamation lawyer for Shortland Chambers, spoke to Newshub about the potential legal action.
"In terms of the individuals, they would have to demonstrate that what had been said had caused them to be thought less of, or shunned and avoided," Stewart said.
"Those are the sorts of rather nebulous concepts that amount to defamation."
Tamaki told Newshub it has "never been an attack on the rainbow community", but about "looking after the innocence of our children".
He said, "We had to stand up to this".
On Friday, two men and one woman were charged with vandalism for painting over Gisborne's rainbow crossing.
In a separate incident on Wednesday night, the rainbow crossing on Auckland's Karangahape Rd was painted over. Tamaki says it wasn't a directive from him.
The rainbow crossing on K Rd is visible once again now that the white paint has been removed. But the hunt for the vandals continues. Police searched a property in Flat Bush where items of interest were found, but so far, no arrests have been made. It's being treated as a hate crime.
Lockett and Torrance worry about that sentiment spreading.
"If the bullying isn't going to stop and if the threats and acts of violence aren't going to stop, then this is the only route we can take," Lockett said.
To them, Rainbow Storytime is nothing to fear.
